Who Pays the Costs of Creating a Sponsored ADR

question 23

Multiple Choice

Who pays the costs of creating a sponsored ADR?

• A) the foreign firm whose stocks underlie the ADR
• B) the U.S. bank creating the ADR
• C) both the U.S. bank and the foreign firm
• D) the SEC since they require the regulation

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Definitions:

District Court

A type of court found in many jurisdictions, often involved in the trial of minor offenses and preliminary hearings for more serious ones, or as the first level of the judiciary in a federal system.

Court Of Appeals

A higher court that reviews the decisions of lower courts to ensure the law was applied correctly.

State Systems

The organizational framework of a state, including its political, legal, and administrative structures.

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Selected by vote for a particular position or office, reflecting the decision of a given electorate.